§ 418.12 — Sales tax increment fund

Iowa § 418.12

• Jurisdiction: Iowa
• Title IX: LOCAL GOVERNMENT
• Ch. 418: FLOOD MITIGATION PROGRAM

Text

1. A sales tax increment fund is established as a separate and distinct fund in the state
treasury under the control of the department of revenue consisting of the amount of the
increased state sales and services tax revenues collected by the department of revenue within
each applicable area specified in section 418.11, subsection 3, and deposited in the fund
pursuant to section 423.2A, subsection 2. Moneys deposited in the fund are appropriated to
the department of revenue for the purposes of this section. Moneys in the fund shall only be
used for the purposes of this section.
2. An account is created within the fund for each governmental entity that has adopted a
resolution under section 418.4, subsection 3, paragraph “d”.
3. Thedepartmentofrevenueshalldepositinthefundthemoneysdescribedinsubsection
1 beginning the first day of the quarter following receipt of a resolution under section 418.4,
subsection 3, paragraph “d”. However, in no case shall a sales tax increment be calculated
under section 418.11 or such moneys be deposited in the fund under this section prior to
January 1, 2014.
4. a. Upon request of a governmental entity, the department of revenue shall remit the
moneys in the governmental entity’s account within the fund to the governmental entity for
deposit in the governmental entity’s flood project fund. Such requests shall be made not
more than quarterly. Requests for remittance shall be submitted on forms prescribed by the
department of revenue. In lieu of quarterly requests, a governmental entity may submit a
certified schedule of principal and interest payments on bonds issued under section 418.14.
If such a certified schedule is submitted, the department of revenue shall, subject to the
remittance limitations of this chapter, remit from the governmental entity’s account to the
governmental entity for deposit in the governmental entity’s flood project fund the amounts
necessary for such principal and interest payments in accordance with the certified schedule.
Requests for remittance shall be made for the amount of moneys in the governmental
entity’s account necessary to pay the governmental entity’s costs or obligations related to the
project, according to the sales tax revenue funding needs specified in the approved project
plan. A governmental entity shall not, however, during any fiscal year receive remittances
under this section exceeding fifteen million dollars or seventy percent of the total yearly
amount of increased sales tax increment revenue in the governmental entity’s applicable
area and deposited in the governmental entity’s account, whichever is less. The total amount
of remittances during any fiscal year for all governmental entities approved to use sales

tax revenues under this chapter shall not exceed, in the aggregate, thirty million dollars.
Remittances from the department of revenue shall be deposited in the governmental entity’s
flood project fund under section 418.13.
b. The department of revenue shall adopt rules for the remittance of moneys to
governmental entities.
5. If the department of revenue determines that the revenue accruing to the fund or
accounts within the fund exceeds thirty million dollars for a fiscal year or exceeds the
amount necessary for the purposes of this chapter if the amount necessary is less than
thirty million dollars for a fiscal year, then those excess moneys shall be credited by the
department of revenue for deposit in the general fund of the state.
6. a. Eachgovernmentalentityapprovedbytheboardtousesalestaxincrementrevenues
for a project under this chapter shall submit two reports to the board certifying the total
amount of nonpublic investment, as defined in section 418.9, subsection 2, paragraph “d”,
that has occurred in the governmental entity’s area as defined in section 418.11, subsection
3. The first report shall be submitted not later than five years after the board approved the
project. The second report shall be submitted to the board not later than ten years after the
board approved the project.
b. If the nonpublic investment requirements of section 418.9, subsection 2, paragraph
“d”, are not satisfied, the board shall reduce the governmental entity’s amount of sales tax
increment revenues eligible to be remitted during the remaining period of time for receiving
remittances by an amount equal to the shortfall in nonpublic investment. However, such a
reduction shall not be to an amount less than zero.